Q1 2024 Plug Power Inc Earnings Call

Operator: Greetings and welcome to the Plug Power first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

Greetings and welcome to the plug power first quarter 2024 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad as a reminder, this conference.

Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce Meryl Fritz, Marketing Communications Manager. Thank you, Meryl. You may begin.

It's being recorded its now my pleasure to introduce Merrill Frits marketing Communications manager. Thank you Merrill you may begin.

Meryl Fritz: Thank you. This is the Plug Power Q1 earnings call. This call will include forward-looking statements. These forward-looking statements include, among others, statements of expectations, beliefs, future plans and strategies, anticipated results from operations and developments, and other matters that are not historical facts. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

Meryl Fritz: Thank you welcome to the plug power Q1 earnings call. This call will include forward looking statements. These forward looking statements include among others statements of expectations beliefs, future plans and strategies anticipated results from operations and development and other matters that are not historical facts. We intend these forward looking statements.

Meryl Fritz: To be covered by the Safe Harbor provisions for forward looking statements contained in section 27, a of the Securities Act of 1933 and section 21 E of the Securities Exchange Act of 1934, we believe that it is important to communicate our future expectations to investors. However, investors are cautioned to not unduly rely on forward looking statements.

Meryl Fritz: We believe that it is important to communicate our future expectations to investors. However, investors are cautioned to not unduly rely on forward-looking statements, and such statements should not be read or understood as a guarantee of future performance or results. Such statements are based upon the current expectations, estimates, forecasts, and projections, as well as the current beliefs and assumptions of management, and are subject to significant risks and uncertainties that could cause actual results or performance to differ materially from those discussed as a result of various factors, including but not limited to the risks and uncertainties discussed under Item 1A, Risk Factors, in our annual report on Form 10-K for the fiscal year ending December 31, 2023, subsequent quarterly reports on Form 10-Q, and other reports we file from time to time with the Securities and Exchange Commission.

Meryl Fritz: And such statements should not be read or understood as a guarantee of future performance or results such statements are based upon the current expectations estimates forecasts and projections as well as the current beliefs and assumptions of management and are subject to significant risks and uncertainties that could cause actual results or performance to differ materially from those discussed as a result.

Meryl Fritz: All of various factors, including but not limited to the risks and uncertainties discussed under item one a risk factors in our annual report on Form 10-K for the fiscal year ending December 31, 2023, some secret quarterly reports on Form 10-Q, and other reports we file from time to time with the Securities and Exchange Commission. These forward looking.

Meryl Fritz: These forward-looking statements speak only of the day in which these statements are made, and we do not undertake or intend to update any forward-looking statements after this call or as a result of new information. At this point, I would like to turn the call over to Plug Power's CEO, Andy Marsh. Thank you, Mer.

Meryl Fritz: Speak only of day in which these statements are made and we do not undertake or intend to update any forward looking statements. After this call or as a result of new information at this point I would like to turn the call over to plug Power's CEO Andy Marsh.

Andrew J. Marsh: Thank you, Meryl, and good morning everyone, and thank you for joining us today. This quarter has been pivotal for Plug, as we continue to execute on our mission to drive the green hydrogen economy. We are focused intensely on enhancing our cash management strategies and accelerating sales growth. These efforts are crucial as we now navigate through the recalibrations necessary for long-term sustainable growth.

Andrew J. Marsh: Merle and good morning, everyone and thank you for joining us today.

Andrew J. Marsh: This quarter some pivotal for plug.

Andrew J. Marsh: As we continue to execute on our mission to drive the green hydrogen economy.

Andrew J. Marsh: We were focused intensely on enhancing our cash management strategies and accelerating sales growth.

Andrew J. Marsh: These efforts are crucial.

Andrew J. Marsh: As we now navigate through the recalibration necessary for long term sustainable growth.

Andrew J. Marsh: Our strategic decisions this quarter are designed to solidify our leadership in the green hydrogen economy. We've made significant strides in scaling up our operations. Our hydrogen generation network has particularly seen substantial growth. Production facilities in Georgia and Tennessee are currently performing at full capacity, and we're eagerly anticipating the completion of our new plant in Louisiana.

Andrew J. Marsh: Our strategic decisions. This quarter are designed to solidify our leadership in the green hydrogen economy.

Andrew J. Marsh: We've made significant strides in scaling up our operations.

Andrew J. Marsh: Our hydrogen generation networks.

Andrew J. Marsh: Particularly as seen substantial growth.

Andrew J. Marsh: Production facilities in Georgia, Tennessee.

Andrew J. Marsh: Currently performing at full capacity and we are eagerly anticipating the completion of our new plant in Louisiana.

Andrew J. Marsh: This addition will not only boost our production capacity by 15 tons per day but also significantly reduce our dependency on third-party hydrogen supplies. Building on this momentum, we're planning the development of up to six additional hydrogen plants across the United States. This expansion is critical for meeting the demand for green hydrogen as industry and transport sectors seek sustainable energy solutions. Strategic placements of these plants will help mitigate logistical challenges, reducing the cost of hydrogen delivery, and enhancing our competitive edge in the market. Plug continues to advance the pending loan guarantee from the Department of Energy and awaits the conditional commitment approval announcement.

Andrew J. Marsh: This addition will not only boost our production capacity by 15 tons per day.

Andrew J. Marsh: <unk> also significantly reduce our dependency on third party hydrogen suppliers.

Andrew J. Marsh: Building on this momentum we're planning the development of up to six additional hydrogen plants across United States.

Andrew J. Marsh: This expansion is critical for meeting the demand for green hydrogen.

Andrew J. Marsh: His industry and transport sectors seek sustainable energy solutions.

Andrew J. Marsh: The strategic placement of these plans will help mitigate logistical challenges, reducing the cost of hydrogen delivery enhancing our competitive edge in the market.

Andrew J. Marsh: Plug continues to advance depending loan guarantee from the department of energy and a weight the conditional commitment approval announcement.

Andrew J. Marsh: This program is expected to bolster the build-out of plug-in liquid hydrogen facilities throughout the United States. Commensurately, the company has started a process with advisors to complement our anticipated DOE projects with project equity investors and project finance partners to finance the build-out of the plan. Our strategy, expanding partnerships and securing new deals, has continued to bear fruit this quarter. The extension of our partnership with Uline and securing a substantial deal with the top U.S. automotive manufacturer are testaments to our robust business model and our ability to deliver comprehensive hydrogen solutions that meet diverse customers' needs.

Andrew J. Marsh: This program is expected to close to the build out flows liquid hydrogen facilities throughout the United States.

Andrew J. Marsh: Commensurately. The company has started a process with the advisers to complement our anticipated projects with project equity and factors affect investors and project Finance partners to finance the build out of the plants.

Andrew J. Marsh: Our strategy expanding partnerships and securing new deals has continued to bear fruit this quarter.

Andrew J. Marsh: The extension of our partnership with <unk> and.

Andrew J. Marsh: And securing a substantial deal with the top U S. Automotive manufacturer are testament to our robust business model and our ability to deliver a comprehensive hydrogen solutions that meet diverse customers needs.

Andrew J. Marsh: These partnerships not only demonstrate our market leadership but also reinforce the trust that major industrial players place in Plug to support their transition to sustainable energy practice. In Europe, our significant expansion efforts are highlighted by the commissioning of 20 PEM electrolyzer systems at sites throughout the country, representing the largest build-out of its kind in the Western world. This is a key part of our strategy to meet the rapidly growing demand for our products globally.

Andrew J. Marsh: These partnerships not only demonstrate our market leadership.

Andrew J. Marsh: Also reinforces the trust that major industrial industrial players, placing plug to support their transition to sustainable energy practice.

Andrew J. Marsh: In Europe, our significant expansion efforts are highlighted by the commissioning of 'twenty, Pam Electrolyzed water systems at sites throughout the country.

Andrew J. Marsh: Representing the largest buildout of its kind in the western world.

Andrew J. Marsh: This is a key part of our strategy to meet the rapidly growing demand for our products globally.

Andrew J. Marsh: A pivotal component of our strategy for electrolyzers is the basic engineering and design package, which currently encompasses projects totaling approximately 4.5 gigawatts. These BDP contracts are not just a testament to our technology and market leadership. They represent potential future sales that could be transformative for Plug by facilitating our customers' journey to final investment decisions. These packages can significantly shorten the sales cycle and enhance our ability to lock in substantial long-term contracts.

Andrew J. Marsh: Pivotal component of our strategy for Electrolyze Yours is the basic engineering and design package, which currently in conferences projects totaling approximately four five gigawatts.

Andrew J. Marsh: These PDP contracts are just not a testament to our technology and market leadership they.

Andrew J. Marsh: They represent potential future sales that could be transformative for plug.

Andrew J. Marsh: By facilitating our customers' journey to final investment decisions. These packages can significantly shorten the sales cycle and enhance our ability to lock in substantial long term contracts.

Andrew J. Marsh: As we continue to advance our technology and increase our project capabilities, Plug is enhancing its footprint, not just in the U.S., but globally. This strategic expansion aligns perfectly with our mission to lead the green hydrogen economy, ensuring that we remain at the forefront of delivering innovative and sustainable energy solutions. Look, despite our successes, we have faced challenges, particularly this quarter with equipment margins due to strategic inventory reductions and this quarter's product sales.

Andrew J. Marsh: As we continue to advance our technology and increase our project capabilities.

Andrew J. Marsh: <unk> is an enhanced its footprint not just in the U S but globally.

Andrew J. Marsh: This strategic expansion aligns perfectly with our mission to lead in the green hydrogen economy, ensuring that we remain at the forefront of delivering innovative and sustainable energy solutions.

Andrew J. Marsh: Look despite our successes we have faced challenges, particularly this quarter with equipment margins due to strategic inventory reductions in this quarter of product sales.

Andrew J. Marsh: In response, we've implemented a series of restructuring measures aimed at reducing costs and improving efficiencies. This includes headcount reductions and operational considerations, which are difficult but necessary decisions to enhance our long-term sustainability and profitability. Look into the future.

Andrew J. Marsh: In response, we've implemented a series of restructuring measures aimed at reducing costs and improving efficiencies. This include head count reductions and operational considerations, which are difficult, but necessary decision to enhance our long term sustainability and profitability.

Andrew J. Marsh: Plug is poised for significant growth. The foundations we're building today through operational excellence, strategic expansion, and a Real Focus on Robust Financial Health are designed to solidify our leadership in the hydrogen market. As the world continues to turn to sustainable solutions, Plug will be ready to meet and exceed the demands of the growing industry. To conclude, we remain deeply committed to our strategic goals and are optimistic about the opportunities ahead. Now Paul, Sanjay, and I are ready to take your questions and provide further insights into our journey.

Andrew J. Marsh: Looking to the future plug is poised for significant growth.

Andrew J. Marsh: Foundations, we are building today through operational excellence strategic expansion.

Andrew J. Marsh: And a real focus on robust financial health are designed to solidify our leadership in the hydrogen market.

Andrew J. Marsh: It's a world continues to turn to sustainable solutions plug will be ready to meet and exceed the demands of the growing industry.

Speaker Change: To conclude.

Speaker Change: We remain deeply committed to our strategic our strategic goals and are optimistic about the opportunities ahead.

Speaker Change: Now Paul Sanjay and are ready to take your questions and provide further insights into our journey.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the list. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for your question. Our first questions come from the line of James West with Evercore ISI. Please proceed with your questions.

Speaker Change: Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.

Speaker Change: Confirmation tone will indicate your line is in the question queue.

Speaker Change: You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment. Please while we poll for your questions.

Speaker Change: Our first questions come from the line of James West with Evercore ISI. Please proceed with your questions.

James Carlyle West: Hey, good morning, Andy. How are you?

James Carlyle West: Hey, good morning, Andy how are you.

Andrew J. Marsh: Okay, James. Good morning.

James Carlyle West: Okay, James Good morning.

James Carlyle West: So we're a few more months into your pricing strategy adjustments and curious, you know, initially, how that went, how it's going now. I suspect your customers will kind of understand that the pricing needed to be adjusted, but I'd love to hear your thoughts or your Transcribed by https://otter.ai

James Carlyle West: So we're a few more months into your pricing strategy adjustments and curious.

James Carlyle West: Initially.

James Carlyle West: How about wind how whats going now.

James Carlyle West: I suspect your customers will kind of understand the pricing needed to be.

James Carlyle West: Adjusted but love to hear your kind of thoughts are where you are.

James Carlyle West: Views on how that process has gone so far and what we should expect over the next several quarters.

Andrew J. Marsh: So James, our primary focus, first and foremost, has been looking to increase the value of the price of hydrogen and also the prices served. When we look at our top eight customers, of those customers, we have come to final written contractual agreements, and the two remaining customers are actually at the point where we're down to final steps in the negotiation. We expect that the hydrogen business will be approaching gross margin break-even by the fourth quarter, which will be a major accomplishment.

James Carlyle West: So James.

James Carlyle West: Our primary focus for.

James Carlyle West: First and foremost has been looking to.

James Carlyle West: Increase the value of the price of hydrogen.

James Carlyle West: And also the prices service.

James Carlyle West: When we look at it.

James Carlyle West: Our top eight customers.

James Carlyle West: Six of those customers, we have come to final written contractual agreements.

James Carlyle West: And the two remaining customers, we've actually at the point where.

James Carlyle West: We're down to final steps in the negotiations.

James Carlyle West: We expect that.

James Carlyle West: The hydrogen business will be approaching gross margin breakeven by the fourth quarter.

James Carlyle West: Which will be a major accomplishment.

Andrew J. Marsh: But I think even, you know, and this is broadly with the material handling market. But we've actually learned a lot along this journey about the value we are bringing to customers. And it is why, you know, I expect equipment sales, and we know where they're going to be for the second quarter, are going to rebound. We feel really good about that after this calibration process.

James Carlyle West: Given this is broadly with the material handling market.

James Carlyle West: But we've actually learned a lateral along this journey.

James Carlyle West: About the value, we're bringing to customers.

James Carlyle West: And it is why.

James Carlyle West: I expect.

James Carlyle West: During the coming three quarters that youre going to see equipment sales and we know where they're going to be for the second quarter are going to rebound we feel really good about that after this recalibration process.

Andrew J. Marsh: And when I look at the electrolyzer business, I can tell you that we have been very successful in raising prices 10 to 15% as we negotiate and work with the customer. So across the board, it's been a difficult journey, a learning journey, with things being, you know, really beneficial for the long-term success of this.

James Carlyle West: And when I look at the Electrolyze your business I can tell you that we have been very successful.

James Carlyle West: In raising prices.

James Carlyle West: 10% to 15% as we negotiate and work with the customers so across the board.

James Carlyle West: It's been a.

James Carlyle West: Difficult journey of learning journey by Thanksgiving.

James Carlyle West: Really beneficial for the long term success of this business.

James Carlyle West: Okay, I got it. And then just a follow-up for me with Georgia, Tennessee online, and Louisiana coming online soon, and I think the focus probably shifts to Texas next, but as we think about, as we're getting towards, you know, maybe now or the end of the year, how much of your current hydrogen supply that you're providing to customers are you now and going to be satisfying by year-end with your own production versus buying from third parties?

Speaker Change: Okay got it and then just a follow up for me with Georgia, Tennessee online in Louisiana coming online soon and I think the focus probably shifts the Texas <unk>.

James Carlyle West: But as we think about.

James Carlyle West: As we're getting towards.

James Carlyle West: Maybe now or the end of the year, how much of your current <unk>.

James Carlyle West: Jen.

James Carlyle West: So I guess green hydrogen supply that you are providing to customers are you now and going to be satisfying.

James Carlyle West: By year end with your own production versus.

James Carlyle West: Buying from third parties.

James Carlyle West: Yes.

Andrew J. Marsh: James, I would expect we'll be in the 65% range because of growth this year. So today we're, you know, about 50 tons per day. I expect we'll be closer to 65 tons per day by year end. And we'll have about, you know, 45 tons of our own capacity. And you're right, the next big event after that is bringing Texas online. And that should be late in the 25, and that would bring 45 tons per day of hydrogen. I got it.

James Carlyle West: James I would expect will be in the 65% range because of growth this year.

James Carlyle West: So today we are.

James Carlyle West: Today, we are.

James Carlyle West: About 50 tons per day, I expect will be closer to 65 tonnes per day by year end, we will have about.

James Carlyle West: 45 tons of our own capacity and in.

James Carlyle West: And Youre right. The next big event after that is bring taxes online and that should be late in 2005 and that would bring 45 tons per day of hydrogen.

James Carlyle West: Got it. Okay, great. Thanks, Andy. Thanks, James.

Speaker Change: Got it okay, great. Thanks, Andy.

Speaker Change: Thanks James.

James Carlyle West: Okay.

Eric Stine: Thank you. Our next questions come from the line of Eric Stine with Craig Hallam. Please proceed with your questions.

James Carlyle West: Our next questions come from the line of Eric Stine with Craig Hallum. Please proceed with your questions.

Eric Stine: Good morning, everyone.

Eric Stine: Eric.

Eric Stine: Hey, so you called up the cost savings measures taken in the quarter. I know previously you had talked about targeting 75 million in annual cost savings. So just curious, what you just disclosed for 1Q, is that above and beyond the $75 million, and maybe just some thoughts on, you know, given this path you're going down, margins, profitability, you know, where those cost savings can go, all in.

Eric Stine: Hey, so you called out.

Eric Stine: Cost savings measures taken in the quarter I know previously you had talked about targeting $75 million in annual cost savings. So just curious.

Eric Stine: What you just disclosed for <unk> is that above and beyond the $75 million.

Eric Stine: And maybe just some thoughts on given given this path youre going down.

Eric Stine: Margins profitability, where are those cost savings can go.

James Carlyle West: All in.

Paul B. Middleton: I'm going to turn that over to Paul. Yeah.

James Carlyle West: I'm going to turn that over to Paul.

Paul B. Middleton: Yeah, so a couple things, Eric. One, you know we've made really good progress. A lot of the actions that we had announced and thought about have been completed, and you're starting to see that in the rates. You'll see a full quarter benefit of that in Q2, you know, because it was kind of mid-quarter when some of those were taken. There are also actions that are underway. So some things like rooftop consolidations, you know, some we were able to do fairly quickly, and some will be completed in Q2.

James Carlyle West: Yes.

Sanjay Shrestha: So a couple of things Eric one.

Sanjay Shrestha: We've made really good progress a lot of the actions that we announced.

Sanjay Shrestha: Analysis and thought about have been completed and youre starting to see that in the rates you will see a full quarter benefit of that in Q2.

Sanjay Shrestha: Because it was kind of mid quarter when some of those were taken there.

Paul B. Middleton: And so you'll see some of those benefits start to manifest in Q2 and progress, you know, on into Q3. So some things are pretty clear, and we're able to act on those pretty quickly, and some things just take some time to work through to figure out what those best actions and activities are. So I think we're, you know, in a great position in terms of what we announced and in a great position as to what we can do incrementally.

Sanjay Shrestha: There is also actions that.

Sanjay Shrestha: Are underway, so some things like rooftop consolidations. Some we were able to do fairly quickly and some will be completed in Q2, and so youll see some of those benefits start to manifest in Q2 and in progress on into Q3.

Sanjay Shrestha: We've come out of the gate laser focused on cash management and.

Sanjay Shrestha: Across this organization everybody understands that cost curtailment and cost downs are critically important so.

Sanjay Shrestha: Absolutely optimistic and excited that I'm sure there is more opportunities as we progress through the year that we're going to continue to find and look to reduce the cost so.

Sanjay Shrestha: Some things are pretty clear and were able to act on those pretty quickly. Some things just take some time to work through to figure out what those best actions and activities are so.

Speaker Change: Thank you.

Speaker Change: In a great position in terms of what we announced and in a great position of what we can do incrementally.

Eric Stine: All right, that's good color. Thank you. And maybe just follow up on the DOE loan. I know you've had confidence in that all along, but it does seem like your commentary this morning would maybe take that up a notch, you know, maybe just current thoughts on timing and next steps. Well, uh...

Speaker Change: Alright, thats good color. Thank you and maybe just follow up.

Speaker Change: <unk> loan I know you've had confidence in that all along but it does seem like your commentary this morning.

Speaker Change: I would maybe take that up another notch, maybe just current thoughts on timing and next steps.

Andrew J. Marsh: Well, look, I think you hit the nail on the head, Eric. We continue to advance the process with the DOE, and, you know, we're anxiously awaiting the committed approval announcement. And look. It is. You know, if you talk about items we're laser focused on, we're laser focused.

Speaker Change: Well.

Speaker Change: Look I think you hit it on the head Eric.

Speaker Change: We continue to advance the process with the Doj and none were anxiously awaiting the.

Speaker Change: Committed approval announcement.

Speaker Change: And look.

Speaker Change: It is.

Speaker Change: Yes.

Speaker Change: You've talked about items, we're laser focused on we're laser focused on it.

Andrew J. Marsh: Got it in the amount. I mean, no changes there. It's just it's consistent with what you talked about in the past. It is consistent with what we talked about in the past. Okay, thank you very much.

Speaker Change: Got it.

Speaker Change: I mean, no changes there.

Speaker Change: System one.

Speaker Change: With what you just talked about in the past.

Speaker Change: It is consistent with what we talked about in the past.

Speaker Change: Okay. Thank you very much.

Speaker Change: You're welcome Eric.

Manav Gupta: Thank you. Our next questions come from the line of Manav Gupta with UBS. Please proceed with your questions.

Speaker Change: Thank you our next questions come from the line of Manav Gupta with UBS. Please proceed with your questions.

Manav Gupta: Good morning, guys.

Manav Gupta: Looks like during the quarter.

Manav Gupta: I think the margin scheme under particular pressure there were some improvements in other gross margin, but this is an area where you saw some pressure but.

Manav Gupta: And just trying to understand the outlook of <unk> do you expect this to improve based on some of the other commentary you made but candidly what's your outlook for the margins I genuinely believe that like <unk> could be the bottom here and equipment margins.

Manav Gupta: Yeah, absolutely. I think, you know, I would say

Speaker Change: Yes, absolutely I think.

Speaker Change: I would say this.

Manav Gupta: We've been pretty consistent that scale and volume makes a big difference and so when you look at the level of equipment sales in Q1.

Manav Gupta: Those are that was a lower level that those those are situations that don't drive the most opportunistic.

Manav Gupta: Leverage on labor and overhead.

Manav Gupta: We've got the facilities and the capacity to produce substantially more than what we're shipping at the moment. So there is nothing but upside and if you look at our forecast Q1 is as we've been consistently sharing as is always the lowest quarter of the year and it's in that.

Manav Gupta: 10% to 12% range of our sales and so if you think about that mathematically that means we're going to be shifting a substantial amount more and recognizing a lot more in the balance of the year. So just volume alone is a big big benefit but.

Manav Gupta: Even some of the cost reduction benefits that we announced in the first quarter. Those a lot of those were operational when you think about rooftop consolidations.

Manav Gupta: Head count reductions and those will pay dividends as we balanced through the year and we start to realize the full benefits of that so it's absolutely upside from here.

Manav Gupta: The second question is, you know, your outlook for your electrolyzer business, and do you think, once the government absolutely finalizes the 45B guidance, there'll be more people who will know exactly what the guidance has looked like, so they'll be more comfortable placing those electrolyzer orders? So just trying to understand what your outlook is for the sale of electrolyzers for the rest of the year.

Speaker Change: Okay. The second question is.

Speaker Change: Outlook player Electrolyze that business and do you think once the government absolutely finalized since the 45 the guidance that will be more people, who would know exactly what the guidance has looked like so there'll be more comfortable placing those electrolyze. It already so I'm just trying to understand whats your outlook for the sale of Electrolyzed us for the rest of the year.

Sanjay Shrestha: I'm going to turn that, Manav, over to Sanjay, but I would highlight, you know, when you look at the activities we have, we're on the ground commissioning 50 megawatts in Europe today, and there is, you know, that activity in Europe is going to grow and continue to grow. And we expect that if I was going to use a crystal ball at the moment, you may even get some in-between guidance in the July, June, July time frame. And I would suspect at the moment final guidance at the end of the year. But I'll let Sanjay talk about what he expects as the head of that business. 2024. Sure. So, Manav, I think...

Manav Gupta: I am going to turn that manav over to Sanjay but.

Sanjay Shrestha: I would highlight.

Sanjay Shrestha: When you look at the activities. We have we're on the ground commissioning 50 megawatts in Europe today, and there is that activity in Europe is.

Sanjay Shrestha: Going to grow and continue to grow and we expect that.

Manav Gupta: If I was going to use a crystal ball at the moment you may even get some.

Manav Gupta: In between guidance in July June July timeframe, and I would suspect at the moment final guidance at the end of the year, but I'll, let Sanjay talk about what he expects us to enter that business.

Sanjay Shrestha: Manav, I think you know you should absolutely expect meaningful sequential growth as Andy just talked about it right we have over 20 systems that's going through site acceptance tests as well as final commissioning that will start to show up in Q2 they'll start to show up in Q3 and by the way for 2024 our Electrovisualizer business is really about executing on a pretty substantial backlog that we already have having said that what you're going to see here is you know Andy touched on our basic engineering design packet where we have about 4.5 gigawatt of that basic engineering design packet some of that is in the US a lot of that is in Europe we also have pretty big opportunity on that basic engineering design packet in Asia Pac and many of these customers right some of them are going into final investment decision by the end of this year some of them are going to final investment decision by early 2025 and you will start to see you know the basic engineering design packet convert into backlog and the good thing for us with that is it not only provides us with a substantial growth as you start to look beyond this year and into 25 and 26 it also makes this business very very predictable we can manage cost we can manage working capital we're working off of a very substantial backlog so when you look at that and then think about also a Paul set from cost reduction perspective right facility consolidation things we are doing to reduce the overall cost of our stack so as you go into the end of this year you should see pretty substantial change in the margin profile for that electrolyzer business and that trend will only go to the right and keeps getting better as you go into 25 and beyond that's how Thanks, Sanjay.

Sanjay Shrestha: In 2020 for sure so Manav I think.

Sanjay Shrestha: You should absolutely expect meaningful sequential growth as Andrew just talked about it right. We have over 20 systems thats going through site, a substantive steps as well as final commissioning that will start to show up in Q2 that will start to show up in Q3 and by the way for 2024 hour electric lines of business is really about executing on a fully subs.

Manav Gupta: Potential backlog that we already have having said that what youre going to see here is Andy.

Manav Gupta: <unk> touched on our basic engineering design package, where we have about four five gigawatt of that basic engineering design package. Some of that is in the U S. A lot of that is in Europe. We also have a pretty big opportunity on that basic engineering design package in Asia Pac and many of these customers right. Some of them are going into final investment decision by the end of this year some of them will go into <unk>.

Manav Gupta: Final investment decision by early 2025, and you'll start to see the basic engineering design package converting the backlog and the good thing for US with that is it not only provides us with a substantial growth as you start to look beyond this year and into 2005 and 26. It also makes this business very very predictable we can manage costs.

Manav Gupta: Can manage working capital we're working off of a very substantial backlog. So when you look at that and then think about also with palm set from a cost reduction perspective right facility consolidations tanks, we are doing to reduce the overall cost of our stocks. So as you go into the end of this year you should see 40 substantial change in the margin profiles of that.

Manav Gupta: <unk> of the business and that trend will only go to the right and keeps getting better as you go into 'twenty five and beyond that how we should think about it.

Manav Gupta: Thanks, Sanjay, for a very detailed response. Thank you.

Speaker Change: Okay. Thanks, Sanjay for a very detailed response thank you.

Speaker Change: Of course, thanks Vanessa.

Bill Peterson: Thank you. Our next questions come from the line of Bill Peterson with JP Morgan. Please proceed with your question.

Speaker Change: Thank you our next questions come from the line of Bill Peterson with Jpmorgan. Please proceed with your question.

Bill Peterson: Good morning, everyone. Thanks for taking the question. Good morning, Bill.

Bill Peterson: Hi, good morning, everyone. Thanks for taking the questions.

Bill Peterson: Good morning Bill.

Andrew J. Marsh: We'd like to talk about the full year and also the first quarter. It did come in light. You did reiterate, you know, one-third in the first half, two-thirds in the second half. I believe you had previously expected to drive year-on-year growth for your overall business in 2024, perhaps even double-digit growth, and I think that you were originally expecting maybe around 15% of your four-year revenue to land in the first quarter. That would infer that the quarter was lighter than expected.

Bill Peterson: We'd like to talk about the full year and also the first quarter. The FERC did come in light you did reiterate one third in first half two thirds in the second half.

Bill Peterson: I believe you had previously expected to drive year on year growth for your overall business in 2024, perhaps even double digit growth.

Bill Peterson: I think that you were expecting originally maybe about 15% of full year revenue would land in the first quarter that would have for the quarter was lighter than expectations. So I guess first off do you still expect to be able to drive year on year growth. This year for the business overall, if thats. The case that implies a pretty large step up in <unk> revenues and a 1% or two thirds scenario, maybe maybe somewhat driven by what Sanjay just.

Andrew J. Marsh: So I guess first off, do you still expect to be able to drive year-on-year growth this year for the business overall? If that's the case, that implies a pretty large step-up in 2Q revenues in a one-third, two-thirds scenario, maybe some of which is driven by what Sanjay just said. But were some of the revenues in the first quarter didn't show up, and are they showing up in the second quarter? What's driving the step-up in the second quarter, and more importantly, what's driving the step-up in the back half of the year? If you could sort by applications and energy and so forth, that'd be helpful.

Bill Peterson: But yes.

Bill Peterson: Some of the revenues in the first quarter, if they didn't show up and they're showing up in the second quarter whats driving the step up in the second quarter and more importantly, what's driving the step up in the back half of the year. So you can parse by applications that energy and so forth that'd be helpful.

Paul B. Middleton: Sure. So, Bill, let me take a step back, and I'm going to hand it off to... Paul, we do expect, as I said on the last call, growth this year. It's certainly, you know, it'll be. We would expect that when we look at the numbers, that by the first quarter, you know, into the second quarter, we expect to be about 33%. So I think the analysts have us out there, and the consensus the analysts have today, when we review it in general, we think they're about right for the second quarter.

Speaker Change: Sure. So bill let me take a step back.

Speaker Change: And I am going to hand, it off to.

Sanjay Shrestha: Paul we do expect.

Sanjay Shrestha: As I said on the last call growth this year.

Sanjay Shrestha: It certainly it will be.

Sanjay Shrestha: No.

Sanjay Shrestha: We would expect that when we look at the numbers that.

Sanjay Shrestha: By the first quarter.

Sanjay Shrestha: Into the second quarter, we expect to be about 33%. So I think the analysts have us out there in the consensus analysts have today, when we review and in General we think there are about right.

Sanjay Shrestha: For the second quarter, and so I think what the street is guiding for the second quarters in line with our revenue expectations.

Paul B. Middleton: And so I think what the street's guiding for the second quarter is in line with our revenue expectations. Paul, maybe you can talk about, I know, you know, part of it's the commissioning of the electrolyzers which kind of slipped from the first to the second. I know there's one material handling customer at three sites that are slipping into the quarter, but you may want to talk about that.

Sanjay Shrestha: Paul.

Sanjay Shrestha: Maybe you can talk about I know.

Sanjay Shrestha: Part of it's the commissioning of the electric <unk>, which kind of slipped from the first and second I know, there's one material handling customers at three sites are slipping into the quarter, but you may want to talk about that.

Paul B. Middleton: Yeah, I guess I'd just preface it by saying if you look at the math and you assume Q1 being, call it 11-12%, 10-12% in that range of the full year, mathematically that infers the full year absolutely is going to grow off of next to last year, as an example. So, that's for sure, and as Andy said, there's, you know, the 5 megawatt system, we're really excited about that deployment, the pipeline, the backlog, the traction that we're making, you know, getting the customers to deploy that and working through those startup activities, that just provides a learning wheel that we can accelerate deployments as we balance through the year with all that we have in the pipeline, so, you know, those will come in in Q2, and there's a lot of activity for what will happen in the second half.

Sanjay Shrestha: Yes.

Sanjay Shrestha: I guess I'll just preface it by saying if you look at the math.

Sanjay Shrestha: Soon.

Speaker Change: Q1 being call it 11% to 12% and 12% in that range of the full year mathematically that and for the full year, absolutely is going to grow off of next last year as an example.

Speaker Change: So.

Speaker Change: That's for sure.

Speaker Change: And as Andy said theirs.

Paul B. Middleton: You know, if you look at the second half, I mean, you know, two-thirds of our sales, as we predicted, and you have the typical seasonality with material handling, and then you have the added compounding benefit of the scaling of these new things that we're doing with electrolyzers and liquefaction and new cryogenic hydrogen products that are, you know, starting to get traction. So, those are the real compounding factors that drive that second half effect, and, you know, I think we feel pretty good about Q2, and we feel really good about the full year.

Sanjay Shrestha: Sanjay, maybe you can describe the electrolyzer business because you have the backlog there as well as in most of your cryogenic business. Maybe you can touch on that, and I'll touch a little on the application. Absolutely.

Speaker Change: Advise your business because you have the backlog there as well as you in your.

Speaker Change: Most of your Crouch <unk>, maybe you can touch on that and I'll touch a loan application absolutely. So so bill I think one of the key things here that actually did have an impact in Q1 is Paul alluded to write so.

Sanjay Shrestha: So, Bill, I think one of the key things here that actually did have an impact in Q1, as Paul alluded to, right, so all this 5 megawatt system that we're going through the commissioning process for, RevRec happens when you actually do a full site acceptance test, right? A lot of that is on us, some of that is on customers, and there's a lot of factors you've got to navigate through. And we've done that, right?

Speaker Change: All this five megawatt system that we're going through commissioning process rubber wreck happens when you actually do a full site acceptance tests right. A lot of that is on us some of that is on customers and there's a lot of factors to navigate through and we've done that right now as we sit here and Q2, you will actually see a lot of those get completed and based on the number of system.

Sanjay Shrestha: Now, I think as we sit here in Q2, you will actually see a lot of those get completed, and based on the number of systems we're working on, you should anticipate that there's going to be a pretty big sequential jump in that revenue going from Q1 to Q2, then to Q3, and that's what's going to really help the energy business sale. And finally, on the liquefaction side of our business, we anticipate new awards here, but these are big ticket items as well, right?

Speaker Change: We're working on you should anticipate that there's going to be a pretty big sequential jumped in that revenue loan from Q1 to Q2, and Q3 and that's what's going to be able to help the energy business sales second piece here is also our cryogenic business we're in.

Speaker Change: Let me break that into two pieces here right as you think about our second half of the year. Prior prior business you should expect a meaningful brought in our mobile refuel or you should also expect meaningful growth in our liquid hydrogen trailer business, which obviously has a higher ticket item as well as a better margin profile, giving you a much bigger second happened.

Speaker Change: Business that even in the first half and finally on the local faction side of our business. We anticipate new awards here, but these are big ticket items as well right. So I think when you. The way you want to think about it meaningful revenue contribution happens really in the second half of the year not so much in the first half of the year and that's why this one third and two third is the reason why we couldn't.

Sanjay Shrestha: So I think when you – the way you want to think about it, meaningful revenue contribution happens really in the second half of the year, not so much in the first half of the year, and that's why this one-third and two-thirds is the reason why we're pretty good about based on sort of the high-level growth number we're talking about.

Speaker Change: Good about based on sort of a high level group number we're talking about for the full year.

Andrew J. Marsh: Yeah, and on the application side, Bill. We just got done with a board meeting, and I can tell you Jose Crespo, who runs our application business, feels that we don't include hydrogen in that business, but we feel pretty confident, probably just like some of the cryogenics business and the electrolyzer business, that the funnel's there, the orders are there, and that 35% of our revenue will be associated with applications.

Bill Peterson: Yeah, I know the applicant.

Speaker Change: And on the application side Bill.

Speaker Change: We just got done a board meeting and I can tell you, who because they crespo, who runs our application business deals that.

Speaker Change: We don't include hydrogen in that business, but we feel pretty confident probably just like some of the crowd business in the Electrolyze your business at the funnels. There. The orders are there and that 35% of our revenue will be associated with applications most of that material handling customers.

Andrew J. Marsh: Most of the material handling customers were mostly people we've done business with for a long time. So I think in general, this was a rough quarter recalibrating customers to get through not doing PPAs anymore, so it took a little bit more time to get things closed, working through the price increases, but I feel good we've come out. So, and, you know, so we feel pretty good about the year, and, as Paul said, we're probably at 10-12% of the year, and we've always said we expected revenue to increase this year.

Speaker Change: Mostly people, we've done business with for a long time so.

Speaker Change: I think in general.

Speaker Change: This was a rough quarter recalibrating customers to get through.

Speaker Change: Not doing ppas anymore. So it took a little bit more time to get things close.

Speaker Change: Working through the price increases.

Speaker Change: But.

Speaker Change: I feel good we've come out with bill so.

Speaker Change: And.

Speaker Change: So we feel we're.

Speaker Change: We feel that.

Speaker Change: Pretty good about the year and as Paul said, we're probably 10, 12% of the year.

Speaker Change: And that we've all we said we expect revenue to increase issue.

Bill Peterson: Yeah, thanks for all the color and insights there. On the DOE loan, conditional loan approval, it looks like this has been shifted out by, you know, around, you know, one and a half months. I thought prior expectations were the end of March. So I guess what is your latest expectation around timing and the feasibility of securing a loan this year? I guess also, especially ahead of a presidential election? And based on the press releases, it sounds like you're thinking the DOE, the process could be waiting on additional partners or project equity investors. If you can explain more of why the delay and what the next steps are and what we should assume and think about for the full year for the full year on this DOE loan. So, Bill, I may have confused you.

Speaker Change: Yeah, yeah, thanks, so what color and insights there.

Speaker Change: On the <unk>.

Speaker Change: The daily loan conditional loan approval. This this looks like this has been shifted out by.

Speaker Change: Around one and a half months prior.

Speaker Change: <unk> expectations, where the end of March So I guess, what is your latest expectation around timing.

Speaker Change: Feasibility securing alone this year.

Speaker Change: I guess I'll say.

Speaker Change: Especially the head of a presidential election, and based off the press release, it sounds like you're thinking.

Speaker Change: The process can be waiting on additional I guess partners or project.

Speaker Change: Quitting investors if he can explain more widely and what the next steps are and what we should assume.

Speaker Change: Think about for the full year for the for the year on this feeling alone.

Andrew J. Marsh: So, Bill, I may have confused you on that writing. That activity with equity investors is separated completely from the activity with the deal, and that is an activity we started as we think about making sure those projects are fully funded. Look, I remain really excited, and you know I can tell you that the conditional commitment application is moving forward, the momentum is good, and we really do hope to share more news.

Speaker Change: So so bill I may have confused you on that writing.

Speaker Change: That activity with equity investors.

Speaker Change: Is separated completely firm the activity with the Doa.

Speaker Change: His activity, we started as we think about making sure those projects are fully funded.

Speaker Change: Look.

Speaker Change: I remain really excited.

Speaker Change: And they can.

Speaker Change: I can tell you that the.

Speaker Change: Conditional commitment applications moving forward.

Speaker Change: Madam was good and boy, we really do hope to share more new suit.

Colin William Rusch: Thank you. Our next questions come from the line of Colin Rusch with Oppenheimer. Please be with your questions.

Craig Erwin: Thank you. Our next question has come from the line of calling rush with Oppenheimer. Please check with your questions.

Colin William Rusch: Thanks so much, guys. You know, on the material handling side, can you talk about the trend lines on diversity of customers? How many more customers are you guys seeing? Are you seeing folks scale up within that business? Just trying to get a sense of what that opportunity set looks like now.

Colin William Rusch: Thanks, So much guys know unlimited handling side can you talk about the the trend lines on diversity of customers. How many more customers are you guys seeing or you've seen folks scale up within that business just trying to get a sense of what the opportunities that looks like now.

Andrew J. Marsh: Yeah, that's a good question, Colin. I can tell you that we are doing two customers for the first time this coming quarter. Uh, both of them probably have distribution centers combined, which are in the 150 type distribution range, center range, brand new, brand new activity. Our penetration in the auto market continues to be really good. And, you know, we've worked through this, and as I said, I think our value proposition, as we've gone through these price increases, has really shown that there was more opportunity for Plug, and you know I would expect, based on what's in Jose's and Tim Terrell's funnel, you'll see continued customer expansion this year, and the next three quarters you'll see us back to normal operation in material handling.

Colin William Rusch: Yes.

Speaker Change: That's a good question.

Speaker Change: I can tell you that.

Speaker Change: We are doing to customers for the first time this coming quarter.

Speaker Change: Both of them probably have distribution centres combined which are in the 150 distribution Rage Center range brand new brand new activity.

Speaker Change: Our penetration the auto market continues to be really good.

Speaker Change: And we.

Speaker Change: We have worked through and as I said I think our value proposition as we've gone through this price increases.

Speaker Change: Really shown that there was more opportunity for plugged.

Speaker Change: And.

Speaker Change: I would expect I know, what's in Jose's and Tim Carroll's funnel.

Speaker Change: You'll see.

Speaker Change: Continue customer expansion this year in the next three quarters, you'll see is back to normal operation immaterial Android.

Colin William Rusch: Thanks so much. And then my follow-up question for Sanjay, you know, as you guys are looking at the opportunity set for the electrolyzer business and doing site selection and looking at the underlying cost structure, can you talk a little bit about your strategy around procurement of power? You know, obviously, there's a lot going on in the power markets right now with interconnection as well as, you know, data center demand, you know, electrification. I just want to understand where your thought process is right now on that procurement.

Speaker Change: Thanks, So much and then my follow ups for Sanjay.

Speaker Change: You guys are looking at the opportunity set for the Electrolyze our business in certain site selection and looking at the underlying cost structure can you talk a little bit about your strategy around procurement of power you know obviously, there's a lot going on in the power market is right now.

Speaker Change: Interconnection as well as.

Speaker Change: Data center demand electrification, just just won't understand where where your thought processes right now on on that procurement I'm.

Sanjay Shrestha: I'm going to hand that to Sanjay. But what you say is actually a big opportunity for our stationary business, Colin. That's right. So go ahead as well as our hydrogen business. But go ahead, Sanjay.

J: I'm going to hand that decide J.

J: But what you say is actually a big opportunity for our stationary business column.

J: Right.

J: Oh go ahead as well as a hydrogen business for go ahead subjects. So so calling I think as it relates to our customer mix right I think majority opportunity. If we were to think about this.

Sanjay Shrestha: So, Colin, I think as it relates to our customer mix, right, I think the majority opportunity, if we were to think about this basic engineering design package, right, that we talked about a four and a half gigawatt, a lot of that is really going to and replacing gray hydrogen in the refining industry to make green hydrogen. That's some of the opportunity. The second set of the opportunity there that you're seeing is really sort of like sustainable aviation fuels. If you would write where they are really identifying a location where they can get access to low-cost power in the European market.

J: Basic engineering design packet trader were talked about a four and a half gigawatt lot of that is really going and displacing gray hydrogen in the refining industry to make them green hydrogen that's some of the opportunity second set of the opportunity. There that you are seeing is really on sort of like sustainable aviation fuel seafood right, where they are really identifying the location.

J: If they can get access to low cost power in the European market. So you can imagine right, where you have a lot of hydro or what are you can actually tap into some of the wind electricity with the low cost that's where we're seeing some of this basic engineering design packets work under the big opportunity in places like Australia, where you are actually talking about big solar farms low cost solar and this is really.

Sanjay Shrestha: So you can imagine right where you have a lot of hydro, or you can actually tap into some of the wind electricity at a low cost. That's where we're seeing some of this basic engineering design packet work. Another big opportunity in places like Australia, where you're actually talking about big solar farms, low cost solar, and this is really more of a green ammonia opportunity to actually export into the Asian market.

J: Eight green ammonia opportunity to impact export into the Asian market rates are one of the good things here, calling is as a company that now has the largest <unk> electrolyze are running in the western World. We're actually able to also work with our customers on things we have learned what challenges we went through how we can help them with that and.

Sanjay Shrestha: Right. So one of the good things here, Colin, is that as a company that now has the largest PEM electrolyzer running in the Western world, we're actually able to work with our customers on things we have learned, what challenges we went through, and how we can help them with that. And then we're looking at the customers, who are the ones that actually have, as you rightfully pointed out, the source of that power, the source, you know, the outlook for that offtake, whether it's going into the refining industry or going to the green ammonia market, growing sustainable aviation fuel. You got to have the power, you got to have the land, you got to have the water.

J: We're looking at the customers wind who are the ones that actually have as you rightfully pointed out source of that power source.

J: The outlook for that off take whether it's going into the refining industry or go into the green ammonia market grow into sustainable aviation fuel you got to have the policy that I have learned you gotta have the water and that that is what really gets you to that final investment decision right. So.

Sanjay Shrestha: And that is what really gets you to that final investment decision, right? So, you know, and again, working hand in hand with them as a part of this feed study really puts us in a very unique and strong position to be able to collaborate with them. And that's clearly the key criteria we use at the end of the day, Colin. It's really about selling value here for our customers, right?

J: Again look working hand hand in hand with them as a part of this field study really puts us in a very unique in a strong position to be able to collaborate with them and that's clearly the key criteria, we use and at the end of the day call and it's really about selling value here for auto customers right, bringing all that to the table and it's not just about price versus cost are we bringing value.

Sanjay Shrestha: Bringing all that to the table, and it's not just about price versus cost. Are we bringing value that allows them to have that attractive levelized cost of hydrogen, thereby a very attractive green ammonia, as well as the opportunity to be able to play in the refining industry?

J: Lost on behalf that attractive levelized cost of hydrogen by a very attractive free pneumonia as well as opportunity to be able to play the refining industry.

Speaker Change: Excellent. Thanks, so much guys.

Speaker Change: Thanks Bill.

Christopher J. Dendrinos: Thank you. Our next question comes from the line of Chris Dendrinos with RBC Capital Markets. Please proceed with your question.

Speaker Change: Thank you. Our next question is coming from the lineup, Chris Tangerine Us with RBC capital markets. Please proceed with your questions.

Christopher J. Dendrinos: Yeah, good morning. Thank you. Good morning.

Chris Tangerine: Yeah. Good morning. Thank you morning, like I always wanted to start out Martin.

Chris Tangerine: I guess I wanted to start out here on the cash burn a little bit and.

Speaker Change: There is some decent sequential improvement as far as.

Speaker Change: Limiting the casual from <unk> so <unk>.

Speaker Change: Any color you can give around the agents for the rest of the year should we expect kind of continued improvement from from where we sit today.

Speaker Change: How should we think about that thanks.

Christopher J. Dendrinos: I guess I wanted to start out here just on the cash burn a little bit. And, you know, there is some decent sequential improvement as far as, you know, limiting the cash flow from ops outs. So any color you can give around the cadence for the rest of the year, should we expect kind of continued improvement from where we sit today? Just how should we think about that? Thanks.

Speaker Change: Yeah.

Speaker Change: Yes, we are.

Speaker Change: Excited.

Speaker Change: It's close to 40% reduction year over year in the first quarter, we've talked about the full year.

Speaker Change: 70% reduction so.

Speaker Change: And the reason why and then for the second half is even bigger right in terms of that reduction and the reason why that is is <unk>.

Speaker Change: A couple of different reasons one.

Speaker Change: Cap capex will be down year over year overall.

Speaker Change: But for the Capex that we did plan for this year, it's a little bit heavier concentrated in the first half of it that will that will dissipate a lot obviously in the second half.

Paul B. Middleton: Yeah, yeah, we're, you know, obviously excited that we have a close to 40% reduction year over year. In the first quarter, we talked about the full year being that 70% reduction. So, and the reason why, and that infers the second half is even bigger, right, in terms of that reduction. And the reason why that is is for a couple different reasons.

Speaker Change: The second thing is is that we anticipate.

Speaker Change: And you've already see it with the working capital getting better in the first quarter belief anticipate even substantially more leverage opportunity in inventory in particular.

Speaker Change: In the coming quarters, and even more so in the second half. So that's that's a big contributor and then the third thing is.

Paul B. Middleton: One, the capex, the capex will be down year over year overall. But for the capex that we did plan for this year, it's a little bit heavier concentrated in the first half. But that'll, that'll dissipate a lot, you know, obviously, in the second half. The second thing is that, you know, we anticipate, and you already see it with the working capital getting better in the first quarter, but we anticipate substantially more leverage opportunity and inventory, in particular, in the coming quarters and even more so in the second half.

Speaker Change: Improving the margins and improving the cash flows in the business and so scale will make a difference as we as we with two thirds of sales half a second half but.

Speaker Change: Factor that will make a big difference is the cloth down that were driving so.

Speaker Change: It will start to see more and more of the benefits and some of the actions we've taken in the first quarter and what we're complete in the second quarter and then the impact of the fuel is pretty pretty impactful in terms of the price increases and turning on these facilities of returning which again will start to have benefited and Q2 and and even more benefit in Q3 and Q4. So.

Paul B. Middleton: So that's, that's a big contributor. And then the third thing is, you know, improving the margins and improving the cash flows in the business. And so scale will make a difference as we, you know, with two-thirds of sales happening in the second half, but the other factor that will make a big difference is the cost downs that we're driving. So, you know, we'll start to see more and more of the benefits and some of the actions we've taken in the first quarter and what we're completing in the second quarter, and then the impact of the fuel is pretty, pretty impactful in terms of the price increases and turning on these utilities that we're turning on, which, which again, will start to have benefits in Q2 and, and even more benefits in Q3 and Q4.

Speaker Change: Those are the drivers that were laser focused on to improve it and we're still.

Speaker Change: Optimistic that we're going to get to that 70% reduction year over year. So you should definitely see continued progression as we move through the year.

Paul B. Middleton: So those are the drivers that, you know, we're laser focused on to improve it. And, you know, we're still, you know, optimistic that we're going to get to that 70% reduction year over year. So you should just definitely see continued progression as we move through the. Got it. Thank you.

Speaker Change: Got it. Thank you and then I guess, maybe just shifting gears here a little bit to that B E. D. P.

Speaker Change: 4.5, gigawatts of opportunity I know in the past you guys' accounts.

Speaker Change: <unk> that the conversion rate on that on that type of activity is extremely high I guess my question is.

Christopher J. Dendrinos: And then I guess maybe just shifting gears here a little bit to that BDP 4.5 gigawatts of opportunity. You know, in the past you guys have commented that the conversion rate on that type of activity is extremely high. Um, I guess my question is, you know, how much of those projects should we expect to kind of go forward? I guess maybe historically, as you do the BEDP activity, what's the conversion rate on just the project actually moving forward into development?

Speaker Change: Mmm, how what portion of those projects should we expect to kind of go forward I guess, maybe historically as you do the B E. D. P activity, what's the conversion rate on just the project actually.

Speaker Change: Moving forward into development.

Sanjay Shrestha: I think it's, to put a precise number there, I think, you know, it's, look, we probably want to go through some more time here, but let me give you an explanation of how we're thinking about it, right? So when we do a basic engineering design package, that really gets a customer to a point where they can actually now go and make a final investment decision. That's the key thing here, right? They've got to get to their FID.

Speaker Change: I think it's up to put the precise number there I think.

Speaker Change: But.

Speaker Change: We would probably want to go through some more time here, but let me give you an explanation of how we're thinking about it. So when we do a basic engineering design packet that really gets a customer to a point where they can actually now go into a final investment decision. That's the key thing here right they've got to get to the <unk> and the key for them to get to the F. D is really going to come down to the entire facility where.

Sanjay Shrestha: And the key for them to get to their FID is really going to come down to the entire facility. We're doing a very significant piece of that FID work related to the electrolyzer. You know, we're obviously pretty much involved with the customer, thinking about the right design architecture, right? But what it's really going to come down to is, for them, the source of power. You know, for them, offtake in terms of what product they are actually, in fact, making from a hydrogen derivative standpoint.

Speaker Change: A very significant piece of that feed worth related to the Electrolyze. There were obviously pretty much involved with the customer thinking about right design architecture right. What is really going to come down to is.

Speaker Change: Part of them source of power.

Speaker Change: Four of them offtake in terms of what products are they actually impact making from a hydrogen derivative standpoint, as we look at our BBB funnel, we feel very good about some of them getting into the final investment decision. This year. Many will get into final investment decision in 2025. So it's really all about building that visa business and that backlog.

Sanjay Shrestha: As we look at our BDP funnel, we feel very good about some of them getting into the final investment decision this year. We will get into the final investment decision in 2025. So it's really all about building that base of business and that backlog throughout this year and into next year, which really puts us in a position where it becomes a very substantial growth business for us, not just for one or two years but for many years to come.

Speaker Change: Throughout this year into next year, and really puts us in a position where it becomes like a very substantial growth business for us not just one or two here, but for many years to come and really a great visibility when you think about it for the cause even really the end of this decade. If you would write so that's how we think about it rather than really trying to handicap, 80% will move or 70 per cent.

Sanjay Shrestha: And really great visibility when you think about it till even really the end of this decade, if you would, right? So that's how we think about it, rather than really trying to handicap, 80% will move or 70% will move. We're really working with the customer in terms of making sure that they can get to their final investment decision. So it ends up going from BDP, in fact, new award bookings, and therefore the backlog to really support our growth in the business. One of the items, Sanjay, that I...

Speaker Change: We're really working with a customer in terms of making sure that they can get to that final investment decision. So we ended up going from BGP in fact, New award bookings and therefore, the backlog to really support our growth in the business.

Speaker Change: The items Sanjay that I.

Andrew J. Marsh: Why I see this so often is because it really is part of the sales cycle, and you have the customer paying you to work. Please see the complete disclaimer at https://sites.google.com or at www.google.com/policies/privacy/. The business point of view is one of the real values I think we're getting from these engagements 100%.

Sanjay Shrestha: Why I see this show positive.

Sanjay Shrestha: Because it really is part of the sales cycle and you have the customer.

Speaker Change: You have to work with you, which shows a level of seriousness about their plans going forward and that's probably.

Speaker Change: From a.

Speaker Change: Business point of view, one of the real values I think.

Speaker Change: We're getting from these engagements, 100%, yes, absolutely.

Speaker Change: Understood. Thank you.

Craig Irwin: Thank you. Our next questions come from the line of Craig Irwin with Ross. Please proceed with your question.

Speaker Change: Thank you. Our next question is coming from the line of Craig Irwin with Roth. Please proceed with your questions.

Craig Irwin: All right. Thank you. So most of my questions have actually been answered. So I want to step back into the bigger picture, right? You have some really exciting pedestal customers in the materials handling market, people using hydrogen forklifts. I guess more than 40% of the groceries in America move around on your hydrogen forklifts. And I assume that there are several other companies of similar character to your pedestal customers that are, you know, evaluating the technology, maybe have... Small implementations and represent interesting longer-term opportunities. Can you maybe sort of scope out for us what you're saying to those customers now with your repositioning of this business? Do you feel that you will be adding pedestal customers over the next few years? And, you know, anything else?

Craig Irwin: Alright, thank you.

Craig Irwin: Most of my questions actually been answered so I wanted to step back into the bigger picture right.

Craig Irwin: You have some really exciting pedestal customers in a minute.

Craig Irwin: Sure I was handling market people using hygiene Portland.

Speaker Change: I guess more than 40 per cent of the groceries in America move around.

Craig Irwin: On your hydrogen for clients and.

Craig Irwin: I assume that there's several other companies similar character to your your pedestal customers that are.

Craig Irwin: You know evaluating the technology and maybe a small.

Craig Irwin: Implementations and Rep.

Craig Irwin: Represent interesting longer term opportunities can you can you may be sort of scope out for us.

Craig Irwin: What you're saying to those customers now with your repositioning of this business.

Craig Irwin: Do you feel that you will be adding pepper Adams pedestal.

Craig Irwin: Pedestal customers over the next few here.

Craig Irwin: And anything.

Craig Irwin: Anything else that you think would be useful for us to understand the longer term trajectory.

Craig Irwin: After we get through this the short term repositioning.

Andrew J. Marsh: So Craig, this is Andy. Good morning.

Craig: So Craig.

Craig: Good morning.

Craig: First and foremost to answer your question is yes.

Andrew J. Marsh: First and foremost, the answer to your question is yes. But let's take it to a higher level. I can tell you we are doing deployments with two customers this quarter, who have 150 warehouses and distribution centers, you know, with whom we have never done business before. So I, you know, so that is, and I can tell you there is an active, active sales activity going on, and we expect the material handling business to get back to normal starting in the second quarter and continuing throughout the year.

Speaker Change: [laughter] take it to a higher level.

Craig: Can tell you we're doing deployment with two customers this quarter to half of 150 warehouses and distribution centers.

Craig: Who we have never done business before.

Craig: So.

Craig: So that is.

Craig: And I can tell you there is an active active sales activity going on then weeks material handling business.

Andrew J. Marsh: You know, I can tell you at, you know, at Molex, which is the big material handling show, we probably had as much interest from new customers as we have seen in any years. So we are, especially here in the U.S., we are pretty, you know; we were not, you know, had to get through this readjustment. Uh, we would have been even more focused in the first quarter, but... Boy, uh... We're not. We actually expect we'll be naming names.

Craig: To get back to normal starting in the second quarter and continuing throughout the year.

Craig: I can tell you at.

Craig: <unk>, which is the big material handling show.

Craig: We probably had as much interest from new customers, we've seen any years so.

Craig: We're especially here in the U S.

Craig: We're pretty.

Craig: We weren't had to go through this readjustment.

Craig: We would have been even more focused in the first quarter, but.

Craig: Boy.

Craig: We're not.

Craig: We actually expect will be naming names.

Andrew J. Marsh: Over the coming year. So the answer to your question is yes, Craig, and, you know, look, when I look at our business, You know, if you want to take a step back, Sanjay's activity in electrolyzers will become our dominant business, probably in 25, and you know that because when you look at the growth rate and the amount of activity that's going on, and but material handling will become a will remain a substantial portion of our business and it'll you know remains a driver of our hydrogen business mentioned earlier in the call you know you know by the end of the year we expect to be using 30 percent more hydrogen than we did at the end of last year, So there is growth.

Craig: Over the coming year. So so the answer your questions, Yes, Craig and.

Craig: Look.

Craig: Wow look at our business.

Craig: If you wanted to take a step back.

Craig: <unk> activity in Electrolyzers.

Craig: Will become our dominant business <unk>.

Craig: Probably in 2005.

Craig: And with that because when you look at the growth rate in the amount of activity is going on.

Craig: But material handling will become as will remain a substantial portion of our business and <unk>.

Craig: It remains a driver of our hydrogen business.

Craig: An ancient earlier in the call.

Craig:

Craig: By the end of the year, we expect to be using 30% more hydrogen than we did at the end of last year. So.

Craig: There is growth.

Andrew J. Marsh: Luckily, because of the value, you know, part of what we've gone through here, we've been able to see the value proposition stronger. And, you know, not only is there growth, but we think with hydrogen, we'll be close to breaking even by the end of the year. And so we see, you know, a significant expansion of the business.

Craig: Luckily because the value part of what we've gone through here, we've been able to see the value proposition stronger.

Craig: And.

Craig: Not only is your growth, but we think.

Craig: With hydrogen will be closed to breakeven by the end of the year.

Craig: So.

Craig: We see <unk>.

Craig: Significant expansion of the business.

Craig Irwin: Excellent. And then two quick questions around green hydrogen. Do you maybe have a cumulative tons or some other metric that you can share on the production from Georgia and Tennessee? That would be really helpful for people to frame out, you know, how that ramp has gone. And then on green hydrogen. You know, 18 bucks a kilogram. I've talked to different people in the market.

Speaker Change: Excellent and then.

Craig: Just two quick questions around around green hydrogen.

Craig: Do you maybe have accumulated tons or some other <unk>.

Craig: A metric that you can share on the production from Georgia and Tennessee.

Craig: That would be really helpful for people to frame out how that ramp is gone and then.

Craig: Hydrogen.

Craig Irwin: And there are suggestions that you can get quite a lot more than that for green hydrogen. So there may still be a little bit of a little bit of an arbitrage if you if you can sell that in the open market.

Craig: You know 18 Bucks kilogram.

Craig: I've talked to different people in the market and there are suggestions that you can get quite a lot more than that for green hydrogen so.

Craig: So there may still be a little bit of a little bit of an arbitrage. If you. If you can sell let me open market can you can you may be uhm.

Andrew J. Marsh: I'm going to take the first part, then I'm going to let the analyst here beside me take the second part of the question. Sanjay, no pressure. I know, I know.

Speaker Change: Okay I'm going to take the first part then I'm glad that the animal was here beside me, taking the second part of that.

Speaker Change: [laughter] I know high level.

Sanjay Shrestha: So, you know, as an operation guy, we're running Tennessee and Georgia about at 80, 85 percent at the moment. You know, just from an optimization point of view and delivery and logistics, you know, we'll probably be running that 85% pretty much at 90% all quarter. That's how we're kind of looking at it, Craig; we're not looking at 100% capacity, but when I look at the flows over the last three or four weeks, that's about where we are. So Sanjay, maybe you can talk about the arbitrage opportunity and how you're thinking about that. So Craig, you're absolutely right.

Speaker Change: And so.

Speaker Change: As in operation Guy, we're running Tennessee, Georgia about 80, 85% at the moment.

Speaker Change: When I look at the.

Speaker Change: We've been ramping that we can't get 100% capacity at logistically you.

Speaker Change: Probably you know.

Speaker Change: Just from an optimization point of view and delivery and logistics.

Speaker Change: Will probably be running that 85% pretty much the 90% all quarter.

Speaker Change: That's how we're kind of looking at it Craig Ruda, we're not looking at 100% capacity, but when I look at the flows the last three or four weeks, that's about where we are so Sanjay maybe you can talk about the arbitrage opportunity and how you were thinking about.

Sanjay Shrestha: So, I think you're absolutely right about that, given what I think we have done here in Georgia. But look, our mission always has been to make sure that you keep driving the price of hydrogen to a level where it's a great value proposition for our end customers and not try to be more opportunistic if you would, right?

Sanjay Shrestha: Having said that, given our production capacity, given some of the discussions we're having, there was clearly an opportunity for us to do a spot sale. We are having those discussions, live discussions with many places, employers in the industry, as we sit here right now, given that, you know, Georgia is now, as Andy talked about it, at the capacity that it is. Tennessee's running at, you know, that 80, 85% capacity, and we have Louisiana coming online.

Sanjay Shrestha: Craig you're absolutely right about that right, even I think what we have done here in Georgia. So.

Sanjay Shrestha: Our mission always has been and make sure that you keep driving the price of hydrogen to a level, where it's a great value proposition program customer I'm not trying to be more opportunistic Youtube wood right, having said that given our production capacity given some of the discussion we're having so there was clearly an opportunity for us to do.

Sanjay Shrestha: Spot sale, we are having those discussions live discussion with many players in the industry as we sit here right now given that Georgia is now as Andy talked about it at the capacity that it is Tennessee running at that.

Sanjay Shrestha: 80, 85% of capacity and we'd have to Louisiana coming online we know what we need internally we know what's available in those discussions are having in your logic. There is absolutely right one and on this call I, probably don't Wanna quite get into the exact pricing number what your point is very well taken and yes. There is an arbitrage opportunity and that should absolutely.

Sanjay Shrestha: We know what we need internally. We know what's available, and those discussions we're having, and your logic there is absolutely correct, and on this call, I probably don't want to quite get into the exact pricing numbers, but your point is very well taken, and yes, there is an arbitrage opportunity, and that should absolutely help, especially as you think about Q4 of this year, really helping margin, growth, revenue, and everything for our fuel bill. Great Well, congrats.

Sanjay Shrestha: Helps especially as you think about Q for us this year really helping margin growth revenue and everything for our fuel business.

Craig Irwin: Great. Well, congratulations, guys, on some significant progress in a difficult period. You made a big difference on a number of things.

Speaker Change: Great well congratulations guys on the on some significant progress in a difficult period, you made a big difference in a in a number of items.

Speaker Change: Thank you Craig.

Sanjay Shrestha: Thank you. Our next questions come from the line of Chris Sung with Wolf Research. Please proceed with your question.

Speaker Change: Thank you. Our next question is coming from the line of Chris sung with Wolf Research. Please proceed with your questions.

Sanjay Shrestha: Hey, good morning guys. Thanks for taking my question. Morning, Chris. I wanted to just follow up on a previous question clarifying the DOE loan. You don't need an equity investor for the conditional commitment, but would you need investors or partners?

Sanjay Shrestha: Good morning, guys. Thanks for taking my question.

Chris: Good morning, Chris.

Sanjay Shrestha: I wanted to just follow up Andy on previous question clarify the alone you don't need an equity investor for conditional commitment, but would you need to.

Sanjay Shrestha: Investors are partners to reach a financial close.

Sanjay Shrestha: No.

Andrew J. Marsh: That's an easy one; that's an easy one.

Sanjay Shrestha: Alright, that's anyhow.

Sanjay Shrestha: Sorry, Chris. Yeah, no, that's helpful. And then can you perhaps remind us of the timing for receipt of proceeds from the DOE loan upon receipt of the conditional proceeds?

Speaker Change: [laughter], sorry, [laughter] Yeah no. Yeah. That's that's helpful. And then can you pass remind us on the timing for receipt of proceeds from the E alone on receded conditional commitment.

Andrew J. Marsh: Yeah, sure. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah,

Andrew J. Marsh: You know, Chris, you know, I, when I look at it, We want to keep you really informed about what's going on and the exciting developments ahead. You know, it's important to recognize that we have ongoing progress and we've really been teaming well with the DOE. And as I said earlier, you were really, you know, we have great forward momentum. And on all this, we really hope to share more information soon.

Sanjay Shrestha: Chris.

Chris: When I look at it.

Chris: We're we're wanting to keep you really informed about what's going on in the exciting development edge.

Chris: Yes, it's important to recognize we have ongoing progress and.

Chris: We really been teeming well with the Doa.

Chris: And as I said.

Chris: Earlier.

Chris: We're really we're we're grateful we're momentum and when all of this we really hope to share more information soon.

Sanjay Shrestha: All right, fair enough. And my final question is on the volumes or spot volumes that you could probably sell into once Louisiana comes along. Can you perhaps quantify how much you would be able to sell? Take a shot at that, Sanjay.

Speaker Change: Alright fair enough and this is my final question is on the <unk>.

Speaker Change: Volumes are spot volumes that you could probably sell into once Louisiana comes on line can you can you perhaps.

Speaker Change: <unk>, how much you would be able to sell.

Speaker Change: Customers yeah. Thanks, Yeah.

Speaker Change: Take a shot that sergeant based on our ongoing discussion right now we anticipate it could be something other than that 10 tons per day kind of neighborhood.

Sanjay Shrestha: Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES

Sanjay Shrestha: Alright, thank you guys. Turn it over.

Speaker Change: Alright, Thank you guys turn it over Okay, Alright, Chris.

Sanjay Shrestha: Okay. All right, Chris.

Jordan Levy: Thank you. Our next questions come from the line of Jordan Levy with Truist Securities. Please proceed with your question.

Chris: Thank you. Our next question is coming from the line of Jordan, leaving with the Truest Securities. Please proceed with your questions.

Jordan Levy: Morning all, and I appreciate all the details. Maybe, maybe for Sanjay here on the electrolyzer sales side. I think you touched on this, and I appreciate there's a lot of complexity in the sales process. Unknown Speaker But maybe just to take a step back, given some of the commissioning delays and that sort of thing, can you just comment on sort of the overall visibility of that segment and what might give you confidence in that visibility improving through the next quarter and the remainder of the year?

Jordan: Good morning, all and appreciate all the details maybe maybe for Sanjay here on the Electrolyze or sales side I think you've touched on this and I. Appreciate it there's a lot of complexity in the sales process and shipment process, there, but maybe just to take a step back give us some of the conditioning boys and that sort of thing can you just.

Sanjay Shrestha: Comment on sort of the overall visibility of that segment and and what might give you confidence in that visibility improving through the next quarter and the remainder of the year.

Sanjay Shrestha: I mean, Jordan, as we touched on this a bit, right, for 2024, this is really about executing on our existing backlog, right? So we are executing on over 25 five-megawatt systems. We have over 25 one-megawatt systems. We are executing on multiple 100-megawatt large-scale projects. So it's really execute, execute, and execute again, right?

Sanjay Shrestha: I mean, Jordan as we touched on disappeared right for 2000 2004. This is really about executing on our backlog right. So we are executing on over 25 five megawatts system. We have over 25, one megawatt system. We are executing on multiple 100 megawatt to large scale projects. So it's really execute X.

Sanjay Shrestha: Q and executed again.

Sanjay Shrestha: So that's the theme for Electrolyzer Business for 2024. Now, another piece here also is that we are doing a lot of installations. We're operating in so many different countries and continents, if you would, and the specification requirements, all the different things that go on from the site acceptance tests tend to vary from location to location. And this is something we're learning along with our customers. And frankly speaking, as we're launching the product, getting into this rapid ramp mode, there's been a lot of learnings.

Sanjay Shrestha: So that's the team for Electrolyze a business for 2000 2000 for now another piece here also is look I mean, we are doing a lot of installation. We're operating in so many different countries and continent. If you would and specific Asian requirements. All the different things that goes on from the site acceptance tests tend to vary from.

Sanjay Shrestha: Location to location and this is something we're learning along with our customers and frankly speaking as we're launching the product getting into this rapid ramp mode. There's been a lot of learnings and some others have taken a bit longer than we anticipated which is why we got the Q1. Some of that is shifting into cue to some of the queue to likelihood was also into Q3, but as we get it in.

Sanjay Shrestha: And some of this has taken a bit longer than we anticipated, which is why we got Q1. Some of that is shifting into Q2. Some of the Q2 likely goes also into Q3. But as we get enough systems installed here in Q2, this also helps us from being able to actually do a transfer of title to the customer even before we complete the entire site acceptance test. Makes it even easier from the revenue recognition perspective, right?

Sanjay Shrestha: <unk> systems installed here in queue to this also helps us from being able to actually do a transfer transfer the title to the customers even before we complete the entire site acceptance test makes it even easier from the revenue recognition perspective right. So that's why I from a cadence standpoint, we feel pretty good about it look there is a lot of work that they.

Sanjay Shrestha: So that's why, from a cadence standpoint, we feel pretty good about it. Look, there's a lot of work that the entire team is doing. Very proud of everything that they do on an everyday basis to make sure that it's all happening. You should expect that there's gonna be pretty big sequential growth in Q2, then another one in Q3, and it should really be a pretty meaningful year for our electrolyzer business in 2024.

Sanjay Shrestha: Tai team is doing very proud of everything that they do on an everyday basis to make sure that it's all happening you should expect that there was going to be a pretty big sequential growth in queue tooth and another one in Q3 and it should really be a pretty meaningful year for our electrolyze of business. In 2000 2004 beyond that you should also expect based on this be ETP new bookings to materialize.

Sanjay Shrestha: Beyond that, you should also expect, based on this BDP, new bookings materializing, setting the stage for 25, 26 and beyond as all this BDP work that we're doing with our customers working hand in hand gets into that final investment.

Sanjay Shrestha: Setting the stage for 25, 26 and beyond as all <unk> work that we're doing with our customers working hand in hand gets into that final investment decision.

Jordan Levy: Got it, appreciate that. And on a separate topic, follow up on the 40 million write-downs you referenced in the release. I know we'll get more details on that in the queue, but just wondering if we should expect those to kind of continue through the year. Yeah, a lot

Speaker Change: Got it appreciate that and separate toddler follow up on the $40 million of write Downs you reference from the release I know will get more details on that in the queue, but just wondering if we should expect those to kind of continue through the year or.

Speaker Change: On that.

Jordan Levy: Yeah, a lot of that is labor and overhead in the plants. When you have a lower level of production activities and sales activities, you just don't get the opportunity to absorb as much. And so, you know, there may be a little bit of that in Q2, as we continue to ramp and scale, but we expect it to dissipate tremendously in the second half as we, as we, you know, move toward There is also another favorable counter to that is the continued progress in the cost down.

Speaker Change: Yeah, a lot of that is.

Speaker Change: Labor and overhead and the plants when you have lower level of production activities in sales activities.

Speaker Change: Don't get the opportunity to absorb as much and so.

Speaker Change: There may be a little bit of that in Q2, as we continue to ramp and scale, we expect it to dissipate tremendously in the second half as we as we move towards substantially more sales activities more production.

Speaker Change: But they're also another favorable counter to that is that the continued progress in the costs down and so you have both effects happening, which is reducing costs and we're increasing the absorption.

Jordan Levy: And so you have both effects happening, which is that we're reducing costs and increasing absorption by producing more and selling more. So I think that you'll see that trend down substantially, you know, as we move through the year.

Sanjay Shrestha: By producing more and selling more so.

Sanjay Shrestha: I think that you will see that trend down substantially as we move for the year.

Paul B. Middleton: Thank you. Our next questions come from the line of Amit Thakkar with BMO Capital Markets. Please proceed with your question. Hey, good morning.

Speaker Change: Got it thank you all.

Ameet Thakkar: Thank you. Our next questions come from the line of Amit Thakkar with BMO Capital Markets. Please proceed with your question.

Speaker Change: Thank you our next questions come from the long enough to car with BMO capital markets. Please proceed with your questions.

Speaker Change: Hey, good morning, everyone, you've got Bryan on here for any thanks for taking our questions.

Speaker Change: Morning.

Bryan: Oh no I was just wondering if you guys would be able to provide an update on that where the cash balance today and sort of along those lines.

Sanjay Shrestha: To provide.

Bryan: An interim update on the issuance on any ATM programs since the last update at the end of February.

Speaker Change: He tapped out at all this current quarter. Thanks.

Ameet Thakkar: Yeah, obviously, we're going to be filing our queue today. So there'll be, you know, 100 pages of detail that'll have a lot of that in there.

Speaker Change: Yeah, obviously, we're going to be following a few today. So there'll be 100 pages of detailed it'll have a lot of that in there but.

Speaker Change: It was roughly what you'll see is roughly $150 million that we raised disclosed in the queue.

Speaker Change: And that's where we said.

Speaker Change: Food today.

Speaker Change: We will.

Speaker Change: Share with you.

Speaker Change: This was a part of your question, but I'll I'll share this.

Speaker Change: We are laser focused on that solutions I mean, we've been working that conversation for a long time.

Paul B. Middleton: But, you know, I'd say, you know, it was roughly, what you'll see is roughly 150 million that we raised disclosed in the queue. And that's where we sit, you know, through today. You know, we, I will share with you, this wasn't part of your question, but I'll share this. We were laser focused on the solutions. I mean, we've been working on that conversation for a long time. We've got a couple parties that we're closer to than we've ever been under terms that are things that, you know, our biggest challenge today has just been finding terms that we feel like are meaningful and helpful for us where we're going.

Speaker Change: We've got a couple of parties that were closer to that than we've ever been under terms of things that our biggest challenge. Today has just finished binding terms that we feel like are meaningful and helpful for us.

Speaker Change: We're goin', but these are two parties that we feel extremely well about and have done a lot of diligence and know them very well and.

Speaker Change: We will see whether that manifest into conclusion, but.

Paul B. Middleton: But these are two parties that, you know, we feel extremely well about and have done a lot of diligence and know them very well. And, you know, we'll see whether that manifests into a conclusion, but, you know, that's our primary, has been and continues to be my primary focus is finding debt solutions that can fund the balance of our firm, which, you know, if you do math, it means we've, you know, in terms of the total context of, you know, the 70% reduction off the last year, in terms of what we need, you know, we're more than halfway of that capital sourcing.

Speaker Change: That's our primary has been and continues to be mindful primary focus is funding that solutions that could fund the balance of our firm which.

Speaker Change: If you do the math it means.

Speaker Change: In terms of the total context of the 70 per cent reduction of last year.

Speaker Change: In terms of what we need we're more than halfway of that capital sourcing. So the need will will start to dissipate a lot which is helpful. But in progress that we continue to show is putting us in a better and better position for source of that capital. So.

Paul B. Middleton: So, you know, the need will start to dissipate a lot, which is helpful, but the interest that we continue to show is putting us in a better and better position for sourcing that capital. So hopefully, that helps provide a little bit of color on how we think about it.

Speaker Change: Hopefully that helps to provide a little bit of color.

Speaker Change: Think about it.

Speaker Change: Yeah, that's great. Thank you so much.

Speaker Change: Okay.

Andrew Salvatore Percoco: Thank you. Our next questions come from the line of Andrew Percoco with Morgan Stanley. Please proceed with your question.

Speaker Change: Thank you. Our next question is coming from the line of Andrew per Coca with Morgan Stanley. Please proceed with your questions.

Andrew Salvatore Percoco: Great, thanks. Thanks so much for taking the time to answer the question this morning.

Andrew J. Marsh: Alright. Thanks, Thanks, so much for taking the question. This morning, I I guess you know.

Andrew J. Marsh: My my first questions, a little bit higher level and coming back I think columns question before on just power procurement strategies and I think I've asked this before but you know the market seems to be evolving pretty quickly AI power demand you know, there's a lot of demand for clean power. It seems like we're pretty constricted in terms of.

Speaker Change: How much supply we can bring to market at least in the U S and your business is very much dependent on low PPA pricing, so that supply demand and balance has has been pushing that P. P prices at least in the U S. I'm. Just curious can you just provide a little bit more context in terms of how you're thinking about power procure.

Andrew Salvatore Percoco: I guess, you know, my first question is a little bit higher level and coming back to, I think, Colin's question before on just power procurement strategies. And I think I've asked this before, but the market seems to be evolving pretty quickly, and power demand, you know, there's a lot of demand for clean power. But it seems like we're pretty constricted in terms of how much supply we can bring to the market, at least in the US.

Speaker Change: Or your additional green hydrogen facilities in the U S beyond Texas, and New York, which happened here already have have agreement sign.

Speaker Change: So go ahead, sorry, Hey, Andrew how are you.

Andrew Salvatore Percoco: And, you know, your business is very much dependent on low PPA prices. So that supply and demand imbalance has been pushing up PPA prices, at least in the US. I'm just curious, can you provide a little bit more context in terms of how you're thinking about power procurement for your additional green hydrogen facilities in the US, beyond, you know, Texas and New York, which obviously already have offtake agreements.

Sanjay Shrestha: Go ahead, Sanjay. Hey, Andrew. How are you?

Sanjay Shrestha: So, look, I think we've actually had this conversation on our last call as well, right? So, this has obviously been very core to our strategy in terms of identifying the location. And as you can imagine, you know, it's going to be really region by region basis, right, in terms of where do you want to go, how do you want to allocate, you know, where do you want to put the plant.

Andrew: So look I think.

Andrew J. Marsh: Actually had this conversation on our last call US right. So this is obviously be in February core to our strategy in terms of identifying the location and as you can imagine.

Andrew: It's going to be really region by region basis right in terms of whether you want to go how do you want to Alex what do you want to put the plan. When we think about building. This green hydrogen generation network not just the plant, but the network in North America. We've always said, we want to go to a location where there is going to be either an existing clear. We can work with that is pretty far along from Ah.

Sanjay Shrestha: When we think about building this green hydrogen generation network, not just the plant, but the network in North America, we've always said we want to go to a location where there is going to be either an existing player we can work with that's pretty far along from a development standpoint that can provide us with that green electron at a price where economics makes sense, right? And in that green electron, you should think about, obviously, solar and wind energy, complemented by nuclear and hydro. That's how we think about it, right?

Andrew: <unk> standpoint that can provide us with that clean electron at a price where economics makes sense right in in that group an electron you should think about obviously solar wind complemented with nuclear and hydro that's how we think about it right and today as you rightfully pointed out Georgia pricing is looking pretty attractive for us.

Sanjay Shrestha: And today, as you rightfully pointed out, Georgia, pricing's looking pretty attractive for us. You know, New York, we're getting a lot of hydro allocation for that. Texas, I'm glad we signed the PPA when we did based on some of the comments you're making.

Andrew: New York, we're getting a lot of hydro allocation for that Texas, I'm glad we signed the P. P. A what we did based on some of the comments you were making so we you should think about this as like we're looking at the West Coast, where we believe that you can actually get some hydro as well as solar power in terms of the location of where rebuild the next plan from a network standpoint, but we're also looking at an.

Sanjay Shrestha: So you should think about this as like, you know, we're looking at the West Coast, where we believe that you can actually get some hydro as well as solar power in terms of the location of where we build the next plant from a network standpoint. But we're also looking at an opportunity in the middle of the country where you might be able to access low-cost, attractive nuclear power. We're also looking at somewhere between the middle of the country and the West Coast, where they are really doing a lot of solar and wind development as well in that region. Don't be surprised if there's plant number two and three in Texas as well.

Andrew: <unk> in the middle of the country, where you might be able to access low cost of attractive nuclear power. We're also looking at somewhere between that middle of the country in the West coast, where they are really doing a lot of solar wind development as well in that region don't be surprised if there was a plant number two and three in Texas as well, we can obviously always expand our existing footprint in the <unk>.

Sanjay Shrestha: We can obviously always expand our existing footprint and our presence in Georgia as well. But look, I mean, I think on this power pricing issue, given everything that's going on, you are right. There's probably some inflationary pressure here. But let's not forget, right, as the supply chain comes back in line, as the rates do what they do, the levelized cost of electricity, it's not just a one-faceted situation, you know? You've got a variety of different things.

Andrew: <unk> in Georgia, as well, but look I mean, I think on this power pricing given everything that's going on your right. There is probably some inflationary pressure here, but let's not forget right as a supply chain comes back in line as the rates do what they do levelized cost of electricity, it's not just one pass at it.

Andrew: One facet of situation right, if you've got a variety of different things and Directionally. It should continue to go down while there might be some disruption on a short term basis and this is a long game at the end of the day right. If there was a situation with a private prices went up for the next six months, we will more likely wait to make sure that it is normalized before we really go down the path of doing anything but today.

Andrew Salvatore Percoco: And directionally, it should continue to go down, while there might be some disruption on a short-term basis. But this is a long game, at the end of the day, right? If there is a situation where the power prices go up for the next six months, you know, we will more likely wait to make sure that it is normalized before we really go down the path of doing anything. But today, for us to accomplish what we're looking to accomplish, we certainly have tentacles in a lot of different locations where we don't feel like there is any need to change our strategy in terms of what we're trying to do.

Andrew: For us to accomplish what we're looking to accomplish we certainly have tentacles and a lot of different locations, where we don't feel like there was any need to change our strategy in terms of what we're trying to do.

Andrew Salvatore Percoco: Would you like to add anything to that? Yeah, I would just say that... You know, if you listen to Craig's comments and questions, you listen to, you know, what the price we're paying in Georgia, what the price we're paying in Texas, what the price we'll pay in New York, I think it's incredible differential advantage that we already have these contracts in place to allow us to do future, you know, for our future expansions over the next couple years. So I, I actually think it makes me feel pretty good. I agree. And it is one of the key benefits of being a first mover. Yeah.

Speaker Change #100: Yeah, I would just say that.

Andrew: If you listen to Craig's comments and questions.

Andrew: Listen to what the price, we're paying in Georgia, what the phrase for pain in Texas, what the price will pay in New York I think it's incredible differential advantage. If we already have these contracts in place to allow us to do future for our future expansions over the next couple of years. So.

Andrew: I I actually think it makes me feel pretty good hi, Randy This one of the key benefits of being a host of course, yes.

Andrew Salvatore Percoco: I understood you. I guess just to follow up on that, do you have any excess power supply kind of banked already or transmission access banked already or for additional projects beyond Texas and New York? Or would you be kind of starting from scratch on those additional facilities?

Speaker Change: Got it understood.

Speaker Change: Just to follow up on that do you have any excess power supply bank.

Randy: D R transmission access bank already or for additional projects beyond Texas, and New York or would you be kind of starting from scratch on on those additional facilities.

Sanjay Shrestha: So we've been on this development journey now for over three years, Andrew, right? So nothing is really for us in terms of what we're thinking about the new build and the new opportunities starting from scratch.

Speaker Change #103: So we've been in this development journey now for over three years, Andrew right. So nothing is really for us in terms of what we're thinking about the new built in to new opportunities starting from scratch.

Sanjay Shrestha: Now, having said that, have we secured a PPA for opportunity on the West Coast? Look, I mean, this depends on what kind of power you're looking to get, what kind of opportunity you're looking to get, right? You can think about California; you can think about Arizona, right? Arizona is probably the most likely location where, you know, we're really trying to figure out what's the best model that works. So, like in the case of Georgia, we already have additional power allocation if we wanted to expand that capacity.

Randy: Now, having said that have we secured PPA for opportunity in the West Coast look I mean this is depends on what kind of power you are looking to get what kind of opportunity are looking to get right. You can think about California and think about Arizona right, Arizona is probably the likely location. We're we're really trying to figure out what's the best model that works.

Speaker Change: So like in case of Georgia, we already have additional power allocation. If we wanted to expand that capacity, Texas, you know very well the reasons in Texas, where you can still get pretty attractive renewable electricity grade so.

Sanjay Shrestha: Texas, you know very well, there are reasons in Texas where you can still get pretty attractive renewable electricity, right? So, you know, nothing is from scratch, but at the level of activity, I wouldn't say it's completely buttoned up, but it's far along enough that it really gives us a view on multiple new plans where we think what our input cost is going to look like. That really gives us that arbitrage and profit margin opportunity while continuing to drive down the cost of hydrogen.

Speaker Change: Nothing is from scratch, but in that level of activity I wouldn't say, it's completely buttoned up but it's far along enough that it really gives us a view on multiple new plans, where we think what our input cost is going to look like that really gives us that arbitrage and the profit margin opportunity, while continuing to drive the cost of hydrogen bell.

Andrew Salvatore Percoco: Understood. Thank you. Sure.

Speaker Change: Understood. Thank you.

Amit Dayal: Thank you. Our next questions come from the line of Amit Dayal with H.C. Wainwright. Please proceed with...

Speaker Change: Thank you. Our next question is coming from the lineup Amit Diarra with H C. Wainwright. Please proceed with your questions.

Amit Dayal: Thank you and good morning everyone. So yeah, I mean, just have some adjacent questions to things already discussed, you know, starting with maybe the sales mix for this year, excluding fuels and other services, just on the equipment side, material handling was another hardware offering. For 24, what the sales mix would look like, and then how that changes in 25 and 26.

Unknown Attendee: Thank you and good morning, everyone.

Unknown Attendee: <unk>.

Speaker Change: Yeah.

Unknown Attendee: [laughter] okay.

Unknown Attendee: Yeah, I mean, just have some adjacent questions to things already discussed starting with maybe the seals mixed with this year.

Speaker Change: Excluding a few than other services just on the equipment side, you know material handling with another hardware offerings.

Speaker Change: For for going for what <unk> would look like and then how the changes in 25 and 26.

Speaker Change: So.

Paul B. Middleton: Paul, I'll take an initial shot at this, and I'll let you answer. I would expect about a third of our business, or 35%, will be material handling. Probably about 30% will be electrolyzers. [inaudible] 10 to 15% hydrogen, and the remaining will be associated with liquefaction, and other private companies.

Speaker Change #102: <unk>, Yeah, I'll take an initial shot at this and I'll, let you answer.

Speaker Change: I would expect.

Speaker Change #108: A third of our business with 35% will be material handling.

Speaker Change: Probably about 30% will be electrolyzers.

Speaker Change: Probably 10.

Speaker Change: 10% to 15% hydrogen.

Speaker Change: And the remaining will be associated with liquefaction and out of the closet.

Speaker Change: And other private business.

Amit Dayal: And does this remain similar in 2025? Or do you see some other parts of the business outside material handling like ramping up more

Speaker Change #104: Understood. Thank you for that.

Speaker Change: And does this remains similar in 2025 or do you see some of the other parts of the business outside mature landing the granting.

Speaker Change: More aggressively.

Andrew J. Marsh: Yeah, I think that we think electrolyzers will be the biggest part of our business come 2025 and that I would expect our liquefaction business to grow in 2025 to be a larger percentage.

Speaker Change #109: Yeah, I I think.

Speaker Change #109: And that.

Speaker Change: We think electrolyzed there will be the biggest part of our business come 2025.

Speaker Change: I would expect their liquefaction business to grow with 25 at the larger percentage.

Amit Dayal: Okay, thank you. And then maybe for Paul... Go ahead, man. Yeah, so maybe for Paul, just, you know... From an operating cost perspective, Paul, like what should we sort of assume on a quarterly basis going forward, you know, 2Q onwards for the rest of 2024?

Speaker Change: Okay. Thank you and then maybe with Paul.

Sanjay Shrestha: Maybe you could yeah. So maybe football just you know.

Sanjay Shrestha: From an operating cost perspective for like what should we zoom on a quarterly basis going forward your own words for the rest of <unk>.

Paul B. Middleton: Yeah, so for our off X run rate, you know, we expect it from last year to this year to be down for a host of reasons. And one of the biggest drivers is the cost reductions that we've been focused on. A lot of the things we did in Q1 will benefit that. So I would think a good proxy is about 120 to 125 million on a quarterly run rate, you know, going on to

Sanjay Shrestha: Yes, so for our Opex run right.

Sanjay Shrestha: We expect.

Sanjay Shrestha: From last year to this year to be down.

Sanjay Shrestha: For a host of reasons and one of the biggest drivers as the cost reductions that we've been focused on a lot of things. We did in Q1 that will benefit that.

Sanjay Shrestha: So I would I think a good proxy is about up.

Sanjay Shrestha: Call it a $120 million to $125 million.

Sanjay Shrestha: On a quarterly run rate going onto the balance of the year.

Amit Dayal: Okay, thank you. That's very helpful. Yeah, that's all I have, guys. I appreciate it.

Speaker Change #107: Okay. Thank you.

Speaker Change #116: Yeah, that's all I have guys I appreciate it.

Speaker Change #107: Alright.

Skye Landon: Thank you. Our next questions come from the line of Skye Landon with Redburn Atlantic. Please proceed with your questions.

Speaker Change #106: Thank you. Our next question is coming from the lineup Sky land and with Redburn Atlantic. Please proceed with your question I mean, you're looking at a gasoline.

Sky land: Good morning Sky.

Skye Landon: Hi, good morning guys. Firstly, we recently had the results of the EU Hydrogen Bank auction, where we saw what were lower than expected winning bids. I'd be interested to hear your thoughts on the results, because on the one hand, it's great to have a low figure as this kind of provides higher electrolysis capacities, but on the other end of things, potentially adds more risk to projects reaching FID. So do you think the subsidy is enough?

Sky land: Hi, good morning.

Sky land: Firstly, we recently had the results from the E Hudson Bank auction, where we saw.

Sky land: What will know his unexpected winning bids I'd be interested to hear your thoughts and the results because on one hand, it's great to have a low figure. This splendid provides high or electrolyzer capacities put him on the on the over under the things <unk> Hotmail risks projects, reaching F. I D. So.

Sky land: Do you think the subsidy is enough for what would you actually prefer to see all of that subsidy level, but we've we've less capacity awarded.

Skye Landon: Or would you actually prefer to see a higher subsidy level but with less capacity awarded? And then, related to this, if you could provide any commentary on your involvement with any of the winning bids and projects there, that would be great as well. Thanks.

Sky land: And then related to this if you could provided named commentary on on your involvement with any of the winning bid.

Speaker Change #111: And projects that that would be great as well thanks.

Speaker Change #112: I would just say sky.

Andrew J. Marsh: I would just say Skye. Yes, we would like to see the prices higher. Sanjay, you've been involved, and maybe you can talk about our customers. I know some of our customers were successful.

Speaker Change #112: Yes, we would like to see the prices higher.

Speaker Change #110: And saw J, you've been involved and maybe you can talk about our customers I know are some of our customers were successful.

Sanjay Shrestha: Some of our customers are, but I think this is still an evolving process, so I think we'd love to talk about, as you rightfully pointed out, right. I think this is an evolving process. Look, I think, like an energy industry, subsidies should be fair to every piece of the energy industry, so we want to see how it all unfolds and maybe not get into the customer-specific thing at this point in time.

Speaker Change #113: Some of our customers have but I think I ended the system of evolving process. So I think what would love to talk about a as you rightly pointed out right. I think this is an evolving process.

J: Look I think like an energy industry subsidies should be fair even to every piece of the energy industry. So we want to see how it all unfolds and maybe not get into the customer specific thing at some point in time.

Andrew J. Marsh: Yeah, I think that probably is a help. I know that doesn't help you, but Skye, I think that is, I think that's the general consensus of us in the hydrogen industry.

Speaker Change #113: I think that probably as hell find it I know that doesn't help you but.

Speaker Change #110: I think that is.

Speaker Change #110: The June.

Speaker Change #110: Yes, and the hydrogen industry.

Skye Landon: Fair enough, no, that's good colour. And then maybe on the 20 electrolyser systems that you're currently, I guess, commissioning, currently undergoing on, are you able to put a capacity figure on this and then also, while I'm sure there's differences on a project by project basis, can you share a little bit more about the process involved to kind of get the site acceptance and the process of, you know, getting some of the equipment to site and a process that needs to go through in order to actually reach revenue recognition, just so that we can get a bit more clarity around exactly how this works?

Speaker Change #114: Sure enough.

Speaker Change #115: That's that's that's good color and then maybe on the on the 20 Electrolyzer systems that you're currently I guess commissions currently undergoing.

Skye Landon: Are you able to put a ah capacity figure on this and and then also <unk> differences on a project by project basis can you <unk> a little bit more about the process involved to kind of get the sorts acceptance.

Sky land: Process of getting a <unk> get a get in some of the equipment sites and an approach that needs to go through in order to actually reach revenue recognition, just say that we can get a bit more clarity around exactly how this works with questions.

Sanjay Shrestha: Absolutely. And look, and this is something we've obviously been spending a lot of time on and asking very fair questions, Skye, right? So the breakdown here of all this commissioning effort that's going on is actually there's over a 25 megawatt system. Okay.

Speaker Change #117: Absolutely and this is something we have obviously been spending a lot of time and very fair question Sky right. So the breakdown of all this commissioning fr. That's going on it is actually there is over 25 megawatts system, Okay, and just to put that in context all of that is not Q too. It's throughout the year, but there is over 25 megawatts system that we're actually going through commission.

Speaker Change #117: <unk> face is making sure that the customers already and there was over $21 one megawatt system and as we just touched on it right. There is also some large scale projects that are continuing to go through fabrication.

Sanjay Shrestha: And just to put that in context, all of that is not Q2, it's throughout the year. But there's over 25 megawatt system that we're actually going through commissioning phases, making sure that the customers are ready. And there's over 21 megawatt system. And as we just touched on it, right, there's also some large scale projects that are continuing to go through, you know, fabrication, enough work rectifiers and things like that. But here is the key when it comes to going from so you got a couple of process, right, you do a factory acceptance test, when the system leaves the factory, and you don't, you know, depending on the situation, sometimes you produce how much hydrogen is produced in that factory acceptance test depends on whether it's a one megawatt system versus a five megawatt And the key to actually get the site acceptance test is make sure that you have, you know, stack performance buttoned up in terms of what the turndown of that stack needs to be like.

Speaker Change #117: Fabrication enough work rectifiers, and things like that but he was a key when it comes to going from so you got a couple of process right you do a factory acceptance test when the system leaves the factory and you don't depending on the situation and sometimes you produce how much hydrogen is producing that factory acceptance tests depends on whether it's a one megawatt.

Speaker Change #117: System versus a five megawatt system and the key to actually get the sight of substance test is make sure that you have.

Sky land: <unk> performance buttoned up in terms of what turned out of that stock needs to be like make sure that all the compliance and the documents are ready to go. So that's another piece and finally, what it really comes down to is have you have you produced enough hydrogen at the specific Asian for that site and that's really the final piece concluded with the hand over and say all right with completed the sight of substance test that's really what it comes.

Sanjay Shrestha: Make sure that all the compliance and the documents are ready to go. That's another piece. And finally, what it really comes down to is, have you produced enough hydrogen at the specification for that site? And that's really the final piece before you do the handover and say, all right, we've completed the site acceptance test. That's really what it comes down to.

Amit Dayal: Down too.

Andy Marsh: [noise].

Skye Landon: So, uh, I'm And just to follow up on that, would it be fair to say that some of the delays in commissioning are on the customer side of things as well, rather than just on the Plug Power side of things?

Sanjay Shrestha: So.

Speaker Change: Just to follow up on that would it be fair to say that some of the <unk> some of them. So the delays and commissioner commissioning is.

Sky land: On the customer side of things as well rather than just on the side of things.

Sanjay Shrestha: Look, we always work hand-in-hand with customers, right, but the customer side also has to be ready. It's not just our commissioning team and everything we do. You're absolutely right about that. And, look, there are some situations where some of those sites could end up being Q3 rather than Q2, but we have tremendous activities going on where the customer is also ready, and the team is really working hand-in-hand with them to be sure that we can do the handover and get the site acceptance test done. But you are right. In some cases, there are things that customers need to do.

Sky land: I Love, we always work hand in hand with customers right, but the customer site also has to be ready, it's north of cyber commissioning team and everything we do it you're absolutely right about that and look there was some situation where some of those sites could end up being Q3, rather than queue to load we have tremendous activities going on where the customers also already and the team is really working hand in hand with them to make sure that we can do.

Sky land: Hand over and get the side of substance test done what you are right in some cases, there are things that customers needs to do as well.

Skye Landon: Perfect, thanks for the extra detail guys. Cheers. Thank you.

Speaker Change: Perfect. Thanks, Thanks, that's an extra detail guys chest.

Andrew J. Marsh: So I'm going to close it out. I want to thank everyone for joining us today.

Skye Landon: <unk>.

Speaker Change: So I'm going to close it out I want to thank everyone for joining us today.

Andrew J. Marsh: I look forward to... Discussions with our analysts throughout the quarter, and look at the foundations. You know, I walked George, I walked Louisiana. I have over one of our factories with one of our key partners to help us build these hydrogen plants in Rochester.

Speaker Change: Forward to.

Andrew J. Marsh: Discussions with our analysts throughout the quarter unlock the foundations.

Andrew J. Marsh: I walk Georgia.

Andrew J. Marsh: Walk Louisiana.

Andrew J. Marsh: I.

Andrew J. Marsh: And, you know, no one has the infrastructure, the customer relationship, and the vision for this industry that I believe that plugs it. I think it's a real differential.

Andrew J. Marsh: I have over a our factories with.

Sky land: One of our key partners.

Andrew J. Marsh: To help us build these hydrogen plants and.

Andrew J. Marsh: In Rochester.

Andrew J. Marsh: No one has the infrastructure of the customer relationships.

Andrew J. Marsh: Vision for this industry that I believe that process.

Andrew J. Marsh: I think it's a real differentiable advantage.

Andrew J. Marsh: It's a bit of a tough... It's been a tough four or five months, but.

Andrew J. Marsh: Tough.

Andrew J. Marsh: Tough for five months.

Andrew J. Marsh: But.

Andrew J. Marsh:

Andrew J. Marsh: We're moving in the right direction, so I look forward to our engagements throughout the quarter and throughout the year. So thank you, everyone, for joining the call.

Andrew J. Marsh: We're moving in the right direction.

Andrew J. Marsh: I look forward to.

Andrew J. Marsh: Our engagement.

Andrew J. Marsh: We're out the quarter and throughout the year. So thank you. Thank you everyone for joining any call.

Operator: Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Speaker Change: Thank you. This does conclude today's teleconference. We appreciate your participation you may disconnect. Your lines at this time enjoy the rest of your day.

Operator: [music].